"From our previous research, we've determined that 90% of our listed companies have already conformed to the 15 CG principles set out as a guideline. In 2005, we intend to conduct a study to add more principles to our guidelines to make them even more aligned with those of the OECD (Organization for Economic Co-operation and Development), which is the internationally-accepted standard," Ms. Sopawadee said.
Concerning the granting of the 'Best Corporate Governance Report' Award as part of the SET Awards in 2005, the points the listed companies gain from their CG assessments will be taken into account, although the awards in this category may have their criteria adjusted to make room for small and medium-sized firms to take part.
For the SET Awards in 2003-2004, the committee selected the winners for 'Best Corporate Governance Report' by utilizing all their information sources at the SET. Meanwhile the Thai IOD has assessed the CG of the Thai listed companies based on the 5 categories used in the OECD's CG guidelines. The Thai IOD issued a report entitled "Corporate Governance Report of Thai Listed Companies" and announced a list of 85 companies included in the top quartile. The Thai IOD has not yet established any awards for these companies however.
"In 2005 the IOD will announce companies in the top and the second quartiles, as these will be firms that perform well in terms of CG and will be able to act as role models for others, even if they haven't received an award from the SET.
“Our consideration to grant awards and disclose listed companies' CG levels originates from valuable information we obtained from the Listed Companies Association," said Ms. Sopawadee.
“As for the baselines used to assess how well a listed company conforms to the 15 CG principles, we have been reviewing and improving the baselines annually since the first assessment in 2001. Our baselines for each of the 15 principles have increasingly become more objective and quantitative, trying to exclude any subjective factors.
“The CG assessment in 2005 will utilize the information of listed companies disclosed in their annual reports, their annual information disclosure forms No.56-1, their invitation letters to the shareholders' meetings and the minutes of those shareholders' meetings, their websites, as well as any other information submitted to the Securities and Exchange Commission (SEC) and the SET.
"Listed companies are encouraged to disclose information in the above-mentioned reports completely as to what and how they've undertaken to be in line with the CG principles. Comprehensive reporting is important because the assessors of the companies’ CG levels will employ the information the companies have disclosed to the public. If they already have good CG practices, the clear disclosing of these activities will be beneficial to the companies," Ms. Sopawadee added.
For more information about CG, please see www.cgthailand.org or contact the SET's CG Center at cgcenter@set.or.th
